Johannesburg — FACED with tough competition from cellphone operators at home, fixed-line operator Telkom has added Botswana to a list of five African countries it considers ripe for investment -- in its bid to seek new sources of revenue.

Telkom spokeswoman Lulu Letlape said yesterday that the company would focus on Botswana, Angola, Nigeria, Democratic Republic of Congo and Kenya.

It is the first time the company has expressed an interest in investing in Botswana. Telkom has previously discussed only the other four countries.

"We have appointed a person in the company who is looking at all these countries and is holding talks about any opportunities there," Letlape said.

She said the company would consider investing in state-owned monopoly Botswana Telecommunications Corporation (BTC), which plans to privatise this year.

"Privatisation of the incumbent is one of the ways we could enter Botswana, or maybe via a mobile (cellphone) company if one becomes available," Letlape said.

Diamond-rich Botswana, which has a population of 1,8-million, currently has two cellphone operators with a market penetration of 30%. Fixed-line operator BTC has a market share of about 8%.

The advent of cellphones in SA more than 10 years ago has proved strong competition. The fixed-line operator currently has about 4,7-million customers -- down from 5,5-million in 2000.

SA's three cellular operators -- Vodacom, MTN and Cell C -- have taken market share from Telkom as people have swapped fixed-line phones for cellphones.

SA currently has 25,8-million cellphone users and analysts expect the number of users to rise to 32-million by 2009.

Telkom, together with its 50% subsidiary Vodacom, said they also wanted to invest in the lucrative Nigerian market, where MTN already has operations.

Analysts said Nigeria, with a population of about 120-million, had huge potential.

"At present Nigeria is by far the most vibrant of the African telecommunications markets with opportunities for mobile operators, service providers, investors and equipment vendors," said Australian-based research and consultancy firm Paul Budde Communication.

The group said fixed-line teledensity, the number of lines per 100 people, in Africa was about 3% while cellphone penetration had reached 8%.

It said alternative technologies such as satellite, wireless and cellular were now making the task of connecting Africa far easier than it has been with traditional cable-based technologies.

"This suggests that fixed-line access may become an outdated measure of a maturing telecommunications infrastructure and follow-on services like internet access are likely to focus on mobile handsets instead," the research group said in its 2005 report.

The African Telecommunications Union said about 3-million people were on waiting lists for a fixed telephone line in Africa.

The organisation, which promotes the development of information communications technology, said there was a demand to support an additional 60-million lines, particularly in remote areas.